Are you wondering what the OpenSea floor price actually means?
Maybe you’ve recently created your own collection and received a warning when you wanted to add a new NFT with a price below the floor price.
Well, don’t worry, because you’re not the only one and there’s a perfectly reasonable explanation for what is going on.
In this guide, you’ll learn what the OpenSea floor price means, how it’s calculated and how you can “change” the floor price in your own collection.
Let’s get right to it.
Key Points (tl;dr)
- The floor price of an NFT collection on OpenSea is simply the lowest active listing for any NFT of the collection.
- Floor prices rise when the cheapest NFTs are purchased and floor prices fall as new listings are added with a fixed price below the current floor price.
- NFT floor prices don’t really need to be calculated, however, the closest thing to a formula would be something like the “MIN()” formula that many of you know from Excel.
- If you’re an artist and are receiving a warning message while listing a new NFT in your collection, you can just ignore it and list the NFT at whatever price you like. If it is lower than the cheapest NFT in your collection then this will reduce the floor price. But that’s it.
For a sample formula on how to calculate the OpenSea floor price, PLEASE READ THE FULL ARTICLE.
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OpenSea Floor Prices: Everything You Need to Know in 2023
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Here’s the answer. Great article by @ChrisHeidorn right here: https://tokenizedhq.com/opensea-floor-price/
What Does the OpenSea Floor Price Mean?
On OpenSea the floor price for an NFT collection is displayed at the top of the page, just below the collection title. The OpenSea floor price is the lowest price at which an NFT from the collection is currently listed.
The floor price is probably one of the most hotly debated topics in the NFT space.
This is especially true in these early days because the vast majority of people in NFTs are mainly just here because of the money.
They believe NFTs are the next big thing, so they FOMO into tons of projects and as soon as the price drops even the slightest bit, people completely freak out and start dumping their positions.
It’s actually quite hilarious.
But that still doesn’t tell you what the OpenSea floor price really means.
Well, you’re probably going to laugh once I tell you what it stands for.
The floor price that you see at the top of an NFT collection on OpenSea is the current lowest price at which one or more NFTs of a particular collection are listed.
It doesn’t say anything about the rest of the collection or what the NFTs are actually worth.
All it says is that this is the lowest price at which someone could currently buy into the collection.
How Does OpenSea Calculate Floor Price?
OpenSea doesn’t need to calculate a floor price. It simply takes the cheapest NFT listing of a given collection and designates that as the floor price. If the cheapest NFT is purchased, then the floor price will usually rise.
At first, a lot of people believe that the OpenSea floor price is the result of some complex mathematical formula.
Well, guess what. It’s not.
But if you really want to know how the OpenSea floor price would be calculated if you had an Excel spreadsheet with all of the listed NFTs, then here’s how.
Imagine you had an Excel sheet with every single NFT from a particular collection, including all the prices at which they are listed.
In order to determine the floor price of the collection, you would use the “MIN()” formula in Excel.
Floor Price = MIN(0.49, 0.50, 0.52, 0.52, 0.6, 0.78) = 0.49
Example of a floor price calculation
This formula returns the lowest number within a series.
And that’s exactly what the OpenSea floor price is.
It’s simply the price of the currently cheapest NFT within a collection that is listed on OpenSea at a fixed price.
Can You Change the Floor Price on OpenSea?
An NFT collections floor price is changed by simply listing an NFT at a lower price than the current floor price. OpenSea will display a warning in order to alert you, but you can ignore this and move forward.
If you’ve created your own NFT collection on OpenSea and tried to add a new NFT to that collection at a lower price than the others, then you may have received a warning from OpenSea.
This warning is meant to alert you to the fact that you’ve listed an NFT below the current floor price of the collection.
It is meant to protect you from listing an item cheaper than you need to.
Some people get confused by this warning message because they think it means they’re not allowed to do this.
So they end up searching for an answer on Reddit and trying to figure out how to change the OpenSea floor price.
However, the floor price isn’t really something that you actively “change”, especially as a creator.
If this is your very own collection, you can do whatever you want and can easily just ignore the message.
Price your NFTs at whatever price you like.
Conclusion
There are a lot of things in NFTs that seasoned veterans tend to take for granted.
Sometimes this can be very confusing for people who are new to the NFT space.
OpenSea floor prices will continue to be one of the hottest topics for years to come.
However, if you’re an artist, just do what feels right to you.
Here at Tokenized, we want to help you learn as much as possible about the coming NFT revolution. We help you navigate this fascinating new world of non-fungible tokens and show you how you can integrate tokenization into your own business.
